Where to Invest: Stock Market vs Real Estate

For new and hopeful passive investors, most of the accessible information on the topic of the stock market versus real estate presents widely varying opinions. The presentations tend to complicate things by assuming you have a solid education in both fields. Rather than feeling informed, this type of guidance leaves you in a state of confusion and frustration.

For newcomers to the debate of real estate or the stock market, I feel it’s best to simplify the subject to ensure you can capture the basics. It’s most important to provide enough information so you can start asking better questions as you embark on an investing path.

I am assuming that you want to grow your retirement funds in a safe investment that will produce good returns. Second, I am assuming you are busy and don’t have the time to gain the in-depth knowledge and experience needed to actively trade or invest in stocks or real estate and you are looking for a simpler solution.

First, I will define both Real Estate Investing and Stock Market Investing. Then I will go over some pros and cons of both types of investing, and secondly I will compare what it looks like to take the passive approach to both Real Estate Investing and Stock Market Investing.

Let’s begin by looking at each type of investment:


Real estate is something that you can physically touch and feel—it’s a tangible good and, therefore, for many investors, feels more real. For many decades this investment has generated consistent wealth and long-term